‘Transformative accord a bridge to shared prosperity’: Industry welcomes FTA with UK

Prime Minister Narendra Modi announced the successful conclusion of a free trade agreement (FTA) between India and the United Kingdom on Tuesday. The development between the world’s fifth and sixth largest economies follows three years of stop-start negotiations. Several industry representatives welcomed the significant development, expecting the deal to benefit Indian exporters in particular given the UK is a major trading partner of India.

The FTA is set to cement the deep relations between both sides while contributing to their economic growth, employment creation and long-term prosperity.

“The India-UK Free Trade Agreement is not just a trade pact—it’s a bridge to shared prosperity. It brings a new momentum to sectors like FMCG, healthcare, and innovation-driven enterprises,” said Harsha Vardhan Agarwal, President, FICCI.

“Guided by Prime Minister Modi’s bold and strategic leadership, this milestone reflects India’s growing stature as a global economic force and a trusted partner in progress,” added Agarwal.

The trade body congratulated the governments of both countries for signing the pathbreaking free trade pact along with the Double Contribution Convention.

The India-UK FTA underscores the need for enhanced trade and investment opportunities amidst the current global trade environment that is faced with uncertainties, and will be immensely beneficial for Indian exporters looking to enhance their presence in the UK market, said FICCI.

Currently, the bilateral trade in goods and services between the two countries is estimated at more than $50 billion.

FICCI expects the India-UK bilateral trade to grow multifold in the coming years.

“The conclusion of India-UK FTA reinforces India’s growing economic strength and diplomatic influence. The trade deal is balanced and forward looking that will bring mutual gains on both sides,” added Agarwal.

“This transformative accord reflects our shared commitment to deepening economic ties, bolstering technology collaboration, diversifying global supply chains, and fostering a more business-friendly environment,” said CII President Sanjiv Puri.

Guided by the 2030 roadmap, the timely agreement will help advance a comprehensive strategic partnership between India and the UK, steering bilateral trade towards the ambitious target of $100 billion by 2030, according to trade body CII.

Puri also said that CII will collaborate with the domestic Industry along with all stakeholders to leverage the vast opportunities in the historic FTA presents, further stimulating growth, innovation, and prosperity in both nations.